For the most part, 2011 was a disappointment for the commodity space. Other than a few diamonds in the rough, and I do mean few, a wide variety of commodities took a major hit on the year, making it a tough one on investors. But some, like gold, were able to shine and remind traders why this asset class can play such a vital role in an individual portfolio. As commodity investing has grown in both popularity as well as investment options over the years, advisors and traders alike have relied on education to keep up with the fast-paced industry. At CommodityHQ, our goal is to provide investors of all kinds with valuable analysis and information on global commodity markets to help you make smarter decisions with your assets. Below, we outline five of the best stories from CommodityHQ this year to help investors make sense of a hectic 2011:
Income investing and commodities have always been presented with something of a disconnect; when most people think of commodities, futures contracts or physical holdings come to mind, not dividends. Yet there are a number of commodity options that offer strong dividend yields that some investors may not be aware of. In this article, we outline some of the biggest dividend payers from every major commodity sector.
Jim Rogers is perhaps the most famous name in commodity investing, as he has amassed a handsome fortune over the years by betting big on his favorite commodities. For those familiar with his investment strategy, Rogers is a big fan of agricultural stocks and commodities as he believes their growth prospects are some of the strongest in the space. This article outlines three agricultural stocks to help traders invest like this commodities guru.
Silver is one of the most popular metals for investment and while it does not have as much practical use as something like copper, its benefits for a portfolio can be huge. 2011 was a rough year for the shiny commodity, as silver prices failed to keep pace with gold’s strong gains. With prices sitting low and silver undervalued by some measures, now may be a good time to buy in to the commodity to turn a profit. This article outlines 25 ways for investors to gain exposure to their favorite precious metal.
Crude oil is arguably the most popular and important commodity in the world. Its uses span from fuels to key components of cosmetics and plastics, giving it a wide reach into our everyday lives. But when it comes to crude investing, some investors are left scratching their heads when trying the distinguish the difference between Brent and West Texas Intermediate (WTI) oil. This article outlines the key differences on the two types of crude to help investors make more informed decisions with their crude allocations.
Late in the year the Wall Street Journal took a swing at commodity investing and the dangers that it presents. While it is true that the majority of commodity traders end up losing money, there is a clear cut-reasoning behind the losses. Commodities are a complex beast and for those not willing to do the scrupulous work required with each position, its not a big shock to see them lose money. This article outlines why WSJ got commodities all wrong, as well as giving investors some good tips about how to handle their commodity investments.
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Disclosure: No positions at time of writing.